META.JK WACC - Weighted Average Cost of Capital

The WACC of Nusantara Infrastructure Tbk PT (META.JK) is 12.0%.

The Cost of Equity of Nusantara Infrastructure Tbk PT (META.JK) is 12.85%.

The Cost of Debt of Nusantara Infrastructure Tbk PT (META.JK) is 5.50%.

	Range	Selected
Cost of equity	11.70% - 14.00%	12.85%
Tax rate	25.60% - 35.50%	30.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	10.9% - 13.1%	12.0%

WACC

META.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.65	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	14.00%

Tax rate	25.60%	35.50%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	7.00%

After-tax WACC	10.9%	13.1%


Selected WACC	12.0%

META.JK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for META.JK:

cost_of_equity (12.85%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.65) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.